Procurement Risk:
Low
Score:
75/100
Government Policy
Q57
75/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Germany has clear, comprehensive, detailed and strict legislation that covers all defence and national…
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The procurement needs of the Armed Forces are organised by the ‘Bundesamt für Ausrüstung, Informationstechnik und Nutzung’ (Federal Office of Bundeswehr Equipment, Information Technology…
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Defence purchases are procured in line with legislation, although there are a few minor exceptions. Sometimes rules are bypassed, including because the contracts are…
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Q58
83/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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The defence procurement cycle process for all varieties of procurement within the Ministry of Defence is defined in the Customer Product Management regulation (CPM).…
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Procedures for the entire defence procurement cycle are disclosed with clear explanations and in disaggregated form. This information includes assessments of needs, contract implementation…
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Contracting authorities are bound by the regulations under public procurement law (please also see Q65 for details). There are detailed policies and procedures for…
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Q59
75/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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Germany has two oversight mechanisms in place for defence procurement. First, parliamentary scrutiny, especially by the Defence Committee and the Budget Committee, and second,…
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Germany has two oversight mechanisms in place for defence procurement. First, parliamentary scrutiny, especially by the Defence Committee and the Budget Committee, and second,…
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Evidence of activity (e.g. reports, press announcements of the cancellation of procurement programmes, the release of financial information) is made available to the public…
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The Government publishes comprehensive forward planning for potential purchases, which extends 10-15 years in advance, e.g. through a strategic defence review, in particular a…
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The German government publishes the plans for defence purchases in detail for at least the next four years [1]. The adequate and timely information…
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Defence purchases are generally made public, but some information is omitted or included in aggregate or abbreviated form [1,2]. In line with EU Directive…
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Data is released in an accessible format, which allows for useful comparisons (e.g. how many tenders a company has won) [1,2]. In line with…
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Capability Gap and Requirements Definition
Q62
50/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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The required procedures and standards for companies are listed on the website of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support…
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While there is some evidence that these policies and laws are implemented, including for strategically important suppliers, it is more difficult to assess how…
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Q63
83/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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Procurement requirements are derived from a national defence and security strategy, and there is logical flow down from strategy to individual procurements set out…
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There is active scrutiny conducted by a number of legally or constitutionally mandated oversight mechanisms (e.g. the parliamentary oversight committee, the inspector general or…
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The Ministry of Defence and the Armed Forces systematically base all purchases on clearly identified and quantified requirements, which are very detailed, well described…
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Tender Solicitation, Assessment and Contract Award
Q64
50/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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Public procurements in Germany are generally conducted as an open competition in accordance with international regulations such as the WTO GPA and specific German…
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Public procurements in Germany are generally conducted as an open competition in accordance with international regulations such as the WTO GPA and specific German…
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Q65
88/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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The contracting authorities are bound by the regulations under public procurement law, in particular the Act against Restraints of Competition (GWB), the Procurement Regulation…
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There is a comprehensive audit trail of which officials were involved in selecting suppliers and designing tender specification [1,2]. There is external verification that…
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Tender boards regulations and codes of conduct are partially transparent [1]. All arms reports go to Parliament [2,3,4]. As of January 2006, award procedures…
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There is some external verification that the particular specifications of the tender are appropriate. However, there appears to be a lack of evidence of…
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Q66
94/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Laws are in place that prohibit collusion within the defence sector, where collusion is defined as between an official and a bidder or between…
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There is clear legislation and implementing guidelines empowering procurement officials to exclude companies and senior company officials where there is a conviction or reasonable…
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Cases are investigated or prosecuted through formal processes and without third-party interference (e.g. undue political influence) [1,2]. Furthermore, Germany will explore the establishment of…
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While procurement officials are trained to identify collusion patterns and report potential malpractice, there are questions over how regular this is. The guidelines for…
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Contract Delivery and In-Service Support
Q67
81/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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There are formal policies and procedures that outline how to monitor, assess and report upon a supplier’s service and or delivery obligations. These include…
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Some contracts are publicly available including modifications post award (e.g. change of subcontractor, change of beneficial owner, additional costs such as a consultant), which…
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Officials regularly produce contract monitoring and completion reports. These include supplier and subcontractor performance appraisals, which are separately verified. If the contract was not…
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According to the CPM (No. 239), the project manager, with the assistance of the Integrated Project Team (IPT), monitors the provision of the contractually…
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Q68
92/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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Formal mechanisms are in place to allow companies to complain about perceived malpractice in procurement. This may include both a court process and an…
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The complaints mechanisms available to companies seem to be efficient and reasonably priced, and are regularly used [1,2].
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Reprimands (the first internal step to be taken by bidders who feel that they were placed at a disadvantage and/or that their rights were…
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In Germany, there is clear legislation and implementing guidelines that empower procurement officials to exclude companies and senior company officials where there is a…
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Article 12, subsection (2) of the ‘Federal Government Directive Concerning the Prevention of Corruption in the Federal Administration’ states that private companies have to…
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An offence can regularly result in a range of sanctions, including prosecution, exclusion from current and future competitions or other sanctions, including heavy fines…
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Offset Contracts
Q70
100/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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This indicator is marked ‘Not Applicable’ as offsets are prohibited under German and EU law [1,2,3].
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Agents / Brokers
Q73
50/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Article 8.2.1 of the ‘Zusätzliche Vertragsbedingungen des Bundesministeriums der Verteidigung zur Verdingungsordnung für Leistungen Teil B’ (Additional Terms of Contract of the Federal Ministry…
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Sanctions are usually applied when policies and laws on the use of agents are violated. This is also related to the Ministry of Economic…
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Financing Package
Q74
50/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Some details of the financing package are made publicly available and key elements, such as the sums involved and payment deadlines, are included. However,…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Exclusive external political influence is rather uncommon for Germany. Some acquisitions are granted as…
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This indicator is not assigned a score in the GDI. The government cites clear and justifiable military need for purchases and from particular suppliers…
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This indicator is not assigned a score in the GDI. Some acquisitions are granted as a result of domestic political pressure, but this is…
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